Answer

Not clear enough. So does that mean my protection from my paint is now down to zero. I presumed it was on top, therefore I kept the protective properties of my paint. That means then if I wear holiday paint I am more vulnerable. No point to it then other than snazzy.

When you equip Holiday paint, the paint you previously had equipped gets unequipped along with its protection. If you have a paint that has protection, it's always better to equip that paint instead of Holiday, because it'll help you to stay alive longer thanks to its protection.